• AUD/USD drops for the third consecutive day, fades bounce off intraday low.
• 50-DMA, rising channel challenges sellers beyond 0.7155.
• 100-DMA, upper line of the channel restricts short-term recovery.
• Bulls need to cross 200-DMA to retake controls.

AUD/USD remains pressured inside a short-term bullish chart pattern but below the key moving averages as bears attack 0.7200 heading into Monday’s European session.

Given the sluggish oscillators, the quote is likely to remain inside a 1.5-month-long bullish channel formation.

However, a clear downside break of the 50-DMA level of 0.7210 becomes necessary for the AUD/USD sellers to aim for the stated channel’s support line, close to 0.7150 at the latest.

Should the pair drops below 0.7150, August month’s low near the 0.7100 threshold may offer an intermediate halt during the anticipated fall towards the year 2021 bottom surrounding 0.6990.

Meanwhile, the 100-DMA level of 0.7285 and the channel’s upper line around 0.7330 restrict short-term advances of the AUD/USD prices.

Even if the quote manages to rise past 0.7330, a descending trend line from May and the 200-DMA, respectively around 0.7405 and 0.7430, will be in focus.

Overall, the AUD/USD prices do grind lower but bears need a validation from 0.7150 level.

AUD/USD: Daily chart

Trend: Further weakness expected